The Hindu Business Line : ONGC offer document filed

THE Government today filed the offer document of Oil and Natural Gas Corporation (ONGC) with the Securities and Exchange Board of India (SEBI) to divest its 10 per cent stake (14.25 crore shares) to investors in the domestic market through book-building process.

Based on the current market price of ONGC, the Government is expected to garner around Rs 10,500 crore from the disinvestment of shares.

The sale of ONGC shares by the Government will be the biggest issue in the history of Indian primary market.

Out of the total shares offered by the Government, 1.42 crore shares (10 per cent of the offer size) has been reserved for employees and directors of the company, similar quantity (1.42 crore) of shares has been reserved for the shareholders of the company (other than IOC and GAIL) and Mangalore Refinery and Petrochemicals (MRPL). However, HPCL, which is a shareholder in MRPL, is not entitled for shares of ONGC in the offer.

Out of the remaining 11.40 crore shares, a maximum of 5.7 crore shares is for qualified institutional buyers, minimum of 2.85 crore shares for non-institutional portion, and for retail investors a minimum of 2.85 crore shares have been reserved.

The minimum number of shares that can be applied for is 10 and the issue has been underwritten.